Student Debt......they Will Be Made To Pay

[Jack's Creation]

Tory rentiers stealing from kids to finance their property developer chums in the South East.

It's incredible most young people haven't rioted.

Nick Clegg has bent them all over and is b*ggering them for all he's worth.

And yet, it was a Labour Government that introduced top-up fees, as well as introducing legislation that allowed securitisation of the debt and most importantly and most inhumanely; made them non-dischargable.

sale of student loans act

That would be your beloved Labour Frank, it was Labour ....L.A.B.O.U.R.

As Far as rentiers go, any idea what percentage of these "SLABS" are held by public sector pension funds?

[wonderpup]

perhaps the debt will be made generational ............?

I believe that in the US parents are responsible if their kids don't or can't pay.

[doomed]

What cannot be repaid will not be repaid. There are far too many claims on not enough money. We are about to witness the end of our financial system.

Edited June 14, 2013 by doomed

[Jack's Creation]

I believe that in the US parents are responsible if their kids don't or can't pay.

If they co-sign , they are.

Also, the "defence of Infancy" does not apply to these loans.

They are putting an entire generation in chains.

It is fundamentally wrong.

[Mr. Miyagi]

http://www.guardian.co.uk/money/2013/jun/13/raise-interest-rate-student-loans-secret-report

[eric pebble]

The thing that I can't get my head around is, that faced with a budget deficit, the government have prioritised for aid homeowners with houses valued at £600K, who are being given an interest free loan of £120K for 5 years to prevent them having to drop their property price by the same amount to sell it. In contrast, stduents have had their charges trebled and are being charged pay-day lender levels of interest by comparison.

This implies that government believes that our economic future lies more in the hands of estate agents than with science and engineering graduates.

BANG ON the nail.

This tells you EVERYTHING:

PWOPERTY is KING. PROPERTY is THE NATION'S RELIGION, IT'S RAISON D'ETRE.

End of story.

[fluffy666]

http://www.guardian.co.uk/money/2013/jun/13/raise-interest-rate-student-loans-secret-report

My word, that's actually evil.

[19 year mortgage 8itch]

My word, that's actually evil.

easy way to solve that problem. Raise base rates...

[Jack's Creation]

http://www.guardian.co.uk/money/2013/jun/13/raise-interest-rate-student-loans-secret-report

"The document, prepared by Rothschild investment bank".

.....and there we have it.

[Mr. Miyagi]

My word, that's actually evil.

Yep.

[SpectrumFX]

http://www.guardian.co.uk/money/2013/jun/13/raise-interest-rate-student-loans-secret-report

My student loans are all paid off, but that article still made me feel a little bit sick.

[MrPin]

There's a financial answer to every problem?

I missed the student loans scam by being a bit older!

I would doubt the value now, of this delayed purchase of education! If it is indeed education?

[winkie]

There's a financial answer to every problem?

I missed the student loans scam by being a bit older!

I would doubt the value now, of this delayed purchase of education! If it is indeed education?

It is an expensive money making monopoly......for a certificate more and more private companies are not recognising......surely by giving people cheaper choices and options to study for a qualification that employers want and need and will pay for must be the way forward.

Or get the universities to work with potential employers so that students have the security of a job at the end of it instead of being dropped with a piece of paper to fend for themselves once all the borrowed money has been spent.

[stormymonday_2011]

It is an expensive money making monopoly......for a certificate more and more private companies are not recognising......surely by giving people cheaper choices and options to study for a qualification that employers want and need and will pay for must be the way forward.

[ingermany]

It is an expensive money making monopoly......for a certificate more and more private companies are not recognising......surely by giving people cheaper choices and options to study for a qualification that employers want and need and will pay for must be the way forward.

Or get the universities to work with potential employers so that students have the security of a job at the end of it instead of being dropped with a piece of paper to fend for themselves once all the borrowed money has been spent.

I agree that not everyone needs a degree. If you want to work in sports hospitality, you can probably learn all you need by working in the industry, and a degree in the subject is not really going to help anyone other than the establishment running the course. But perhaps, given the strategic long term requirements to train engineers, scientists, doctors, and the like, government should be working with industry to support a sustainable higher education infrastructure designed to meet predicted future needs. It doesn't need centralised control, but it could do with some targeted investment. Medical degrees are not just another consumer commodity to be sold on credit.

Instead the higher education system has been put out to the free market, whilst the mortgage finance industry has been nationalised, and centrally controlled, at a cost to taxpayers of at least 40x the cost of higher education. All so that the average 55 year old mortgage owner can buy a new 4x4 every year from his housing equity. Short term support of consumer spending and house prices has become the only economic and social priority.

I'm not just blaming the UK though. I was listening to a HSBC analyst on the radio explaining why China's most important industry is......the housing market. It feels like everyone else is slowly sinking to our level. .

Edited June 16, 2013 by ingermany

[Ulfar]

I see the push for everyone to go to university as a failure of employers as well.

What has happened to all the apprenticeships and work training. It seems that a lot of employers expect the applicant to turn up to the job pre-trained. As time goes on that is going to be harder and harder to achieve as those who did benefit from proper vocational training retire.

The student debt situation is criminal, but TPTB want debt slaves.

I have one of the original student loans and have less than 5 years until it is written off, I am not alone in this. The loan is backed by RBS, hope they have recapitalised.

[easy2012]

The student debt situation is criminal, but TPTB want debt slaves.

Yap - otherwise who is going to serve/produce for the generation who is retiring if everyone just need to work 2 days a week to meet all one's need (a 2 up down + 1 car + food).

[winkie]

I agree that not everyone needs a degree. If you want to work in sports hospitality, you can probably learn all you need by working in the industry, and a degree in the subject is not really going to help anyone other than the establishment running the course. But perhaps, given the strategic long term requirements to train engineers, scientists, doctors, and the like, government should be working with industry to support a sustainable higher education infrastructure designed to meet predicted future needs. It doesn't need centralised control, but it could do with some targeted investment. Medical degrees are not just another consumer commodity to be sold on credit.

Instead the higher education system has been put out to the free market, whilst the mortgage finance industry has been nationalised, and centrally controlled, at a cost to taxpayers of at least 40x the cost of higher education. All so that the average 55 year old mortgage owner can buy a new 4x4 every year from his housing equity. Short term support of consumer spending and house prices has become the only economic and social priority.

I'm not just blaming the UK though. I was listening to a HSBC analyst on the radio explaining why China's most important industry is......the housing market. It feels like everyone else is slowly sinking to our level.

I agree with this^ it makes much sense.

Looks like how they want/have to play it is........an asset in future can only be purchased with a debt that has a high chance of never having to be repaid.....how they laughed.

[Executive Sadman]

In my opinion, student loans are worse than banks and PPI. At least the banks target people who are legally adults.

The university pimps whore their wares to people who are, at 16 or 17, legally still children. Make grandiose claims about future earning potential and never talk about the downsides of a debt financed education.

I think any party who wiped away student debts (with a few attached conditions) would be very electable in the 20-40 age group.

[RufflesTheGuineaPig]

You all misunderstand.

Government student loads aren't a debt.

They are merely higher base-rate income-tax for everyone born after 1992.

[winkie]

You all misunderstand.

Government student loads aren't a debt.

They are merely higher base-rate income-tax for everyone born after 1992.

......same thing, but worse.

[erat_forte]

You all misunderstand.

Government student loads aren't a debt.

They are merely higher base-rate income-tax for everyone born after 1992.

Actually only for those earning less than three times the average wage!

[wonderpup]

The entire point of having a degree is that other people don't. Like anything else their value is related to their scarcity.

So the idea of widening the reach of degree level education by using debt financing is self defeating- the more degrees you 'sell' via debt based education funding, the less likely it is that those who 'buy' those degree's will be to pay back their loans, since that degree will be less likely to guarantee a good income due to the number of degree qualified people available- their market value goes down and so does their earning power.

[MarkG]

So the idea of widening the reach of degree level education by using debt financing is self defeating

Not if you work at a university.

'Student loans' are a scam to transfer vast amounts of money from taxpayers to lefty academics.

[pjw]

The connection in the US between student loan debt and house prices was made at http://www.cnbc.com/id/100513344

The staggering amount of outstanding student debt — nearly $1 trillion owed – is beginning to impede the U.S. economy as a whole, a new report from the New York Federal Reserve suggests, chiefly by robbing the housing market of its richest crop of new buyers: young college graduates.

It goes on to say that large numbers of graduates are delinquent on their debts by more than 3 months' payments, and so they can't get credit. So the whole debt-fuelled consumer economy is just not working as it used to...